Family Dollar 2010 Annual Report Download - page 43

FAMILY DOLLAR STORES, INC., AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
Years Ended
(in thousands)
August 28,
2010
August 29,
2009
August 30,
2008
Cash flows from operating activities:
Net income ............................................. $358,135 $ 291,266 $ 233,073
Adjustments to reconcile net income to net cash provided by
operating activities:
Depreciation and amortization .......................... 172,037 159,808 149,598
Deferred income taxes ................................. 8,123 4,426 6,878
Excess tax benefits from stock-based compensation ......... (1,676) (704) —
Stock-based compensation ............................. 13,163 11,538 10,073
Loss on disposition of property and equipment, including
impairment ....................................... 7,244 9,924 6,298
Other gains and losses ................................. — 1,228 —
Changes in operating assets and liabilities:
Merchandise inventories ........................... (34,225) 38,888 33,213
Income tax refund receivable ....................... 8,618 (1,611) 37,387
Prepayments and other current assets ................. 200 238 (6,088)
Other assets ..................................... 2,666 6,027 (4,714)
Accounts payable and accrued liabilities .............. 57,405 13,798 21,415
Income taxes .................................... 16,771 210 1,466
Other liabilities .................................. (16,922) (5,837) 27,139
591,539 529,199 515,738
Cash flows from investing activities:
Purchases of investment securities ........................... (142,730) — (1,071,570)
Sales of investment securities ............................... 46,888 44,943 1,039,115
Capital expenditures ...................................... (212,435) (155,401) (167,932)
Proceeds from dispositions of property and equipment ........... 1,329 1,103 831
(306,948) (109,355) (199,556)
Cash flows from financing activities:
Revolving credit facility borrowings ......................... — — 736,300
Repayment of revolving credit facility borrowings .............. — — (736,300)
Payment of debt issuance costs .............................. (651) (624) (304)
Repurchases of common stock .............................. (332,189) (71,067) (97,674)
Change in cash overdrafts .................................. 49,687 (27,256) (79,727)
Proceeds from exercise of employee stock options .............. 19,663 31,525 257
Excess tax benefits from stock-based compensation ............. 1,676 704 —
Payment of dividends ..................................... (78,913) (72,738) (67,408)
(340,727) (139,456) (244,856)
Net change in cash and cash equivalents ......................... (56,136) 280,388 71,326
Cash and cash equivalents at beginning of year ................... 438,890 158,502 87,176
Cash and cash equivalents at end of year ........................ $382,754 $ 438,890 $ 158,502
Supplemental disclosures of cash flow information:
Purchases of property and equipment awaiting processing for
payment, included in accounts payable ...................... $ 22,848 $ 4,575 $ 6,579
Cash paid during the period for:
Interest, net of amounts capitalized ....................... 12,568 12,192 14,340
Income taxes, net of refunds ............................ 175,915 158,486 58,891
The accompanying notes are an integral part of the consolidated financial statements.
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